diff --git a/erpnext/accounts/doctype/payment_entry/payment_entry.py b/erpnext/accounts/doctype/payment_entry/payment_entry.py
index 9e2deedc99e..42f48c0aef0 100644
--- a/erpnext/accounts/doctype/payment_entry/payment_entry.py
+++ b/erpnext/accounts/doctype/payment_entry/payment_entry.py
@@ -1175,8 +1175,8 @@ def validate_inclusive_tax(tax, doc):
 
 
 @frappe.whitelist()
-# nosemgrep
 def get_outstanding_reference_documents(args):
+
 	if isinstance(args, str):
 		args = json.loads(args)
 
diff --git a/erpnext/accounts/doctype/payment_entry/test_payment_entry.py b/erpnext/accounts/doctype/payment_entry/test_payment_entry.py
index 4609f45c958..02627eb0074 100644
--- a/erpnext/accounts/doctype/payment_entry/test_payment_entry.py
+++ b/erpnext/accounts/doctype/payment_entry/test_payment_entry.py
@@ -20,6 +20,7 @@ from erpnext.accounts.doctype.sales_invoice.test_sales_invoice import (
 	create_sales_invoice_against_cost_center,
 )
 from erpnext.selling.doctype.sales_order.test_sales_order import make_sales_order
+from erpnext.setup.doctype.employee.test_employee import make_employee
 
 test_dependencies = ["Item"]
 
@@ -736,6 +737,10 @@ class TestPaymentEntry(FrappeTestCase):
 
 		self.assertTrue("is on hold" in str(err.exception).lower())
 
+	def test_payment_entry_for_employee(self):
+		employee = make_employee("test_payment_entry@salary.com", company="_Test Company")
+		create_payment_entry(party_type="Employee", party=employee, save=True)
+
 
 def create_payment_entry(**args):
 	payment_entry = frappe.new_doc("Payment Entry")